Can You Remove Credit Inquiries From Your Credit Report?

Credit inquiries are a common occurrence on credit reports, reflecting instances when your credit information has been accessed. This article aims to clarify the circumstances under which certain credit inquiries might be removed from a credit report and the steps involved in that process.

Types of Credit Inquiries

Credit inquiries fall into two primary categories: hard inquiries and soft inquiries. Each type carries different implications for your credit report and score.

Hard inquiries typically occur when you formally apply for new credit, such as a mortgage, auto loan, or credit card. They signify that a lender has accessed your credit report to assess your creditworthiness. While a single hard inquiry usually has a minor, temporary effect on your credit score, often reducing it by fewer than five points, multiple inquiries in a short period can have a more pronounced impact, unless they are for rate shopping for specific types of loans within a defined timeframe, usually 14 to 45 days, in which case they may be treated as a single inquiry. These inquiries remain on your credit report for up to two years, though their influence on your credit score typically diminishes after 12 months.

Conversely, soft inquiries occur when your credit report is accessed without being tied to a specific application for new credit. Examples include checking your own credit score or report, pre-screened offers of credit from companies, or background checks by potential employers or landlords. These inquiries do not require your permission and, importantly, they do not impact your credit score. Soft inquiries may or may not appear on your credit report, depending on the credit bureau, and are generally only visible to you.

Determining Which Inquiries Can Be Removed

The possibility of removing a credit inquiry depends on its type and the circumstances surrounding its appearance. Only certain hard inquiries are eligible for removal.

Legitimate hard inquiries, those made with your permission as part of a credit application, cannot be removed from your credit report before their natural expiration, which is typically two years. However, hard inquiries can be disputed and potentially removed if they are invalid or erroneous. Such situations include unauthorized inquiries, where a credit pull occurred without your permission, possibly due to identity theft or fraud. Clerical errors by the creditor or credit bureau that result in an incorrect inquiry appearing on your report also qualify for removal.

Before initiating a removal process, it is advisable to review your credit reports from all three major credit bureaus—Equifax, Experian, and TransUnion—to identify any unfamiliar or questionable inquiries. You can obtain free copies of your credit reports weekly from AnnualCreditReport.com. This review helps in pinpointing specific inquiries that might meet the criteria for removal due to being unauthorized or inaccurate.

The Process for Removing Inquiries

Initiating the removal process for erroneous or unauthorized credit inquiries involves a structured approach, typically beginning with gathering necessary evidence. This documentation could include personal records, such as correspondence with the creditor, or official reports like a police report or a Federal Trade Commission (FTC) Identity Theft Report if identity theft is suspected. These documents serve to substantiate your claim that the inquiry is inaccurate or unauthorized.

The next step involves contacting the credit bureaus directly. You can dispute an inquiry with Equifax, Experian, and TransUnion online, by mail, or by phone. When submitting a dispute, you should clearly explain what you believe is wrong, why it is wrong, and include copies of all supporting documents. Sending disputes by certified mail with a return receipt requested provides a record that your letter was received.

It is also advisable to contact the creditor that made the inquiry. Explain the situation and request that they remove the erroneous inquiry from your credit report. Under the Fair Credit Reporting Act (FCRA), credit bureaus are required to investigate disputes, typically within 30 days, and notify you of the results. If the investigation confirms the information is inaccurate or cannot be verified, the inquiry must be removed from your credit report.